If we increase our earned income, what do we need to consider?


  • What are the increased costs incurred by earning more income (eg. More staff time or more materials)?
  • Remember if you make sales exceeding £70,000 in a 12 month rolling period (2010-11 threshold), then you must register for VAT.
  • Think about whether you need to pay Corporation Tax on your profits:
    – if your profits are applied to charitable objects, you may be eligible for corporation tax relief.
    – if your profit-generating activities are not the primary purpose of your charity, there are limits on how much you can generate, tax free.  See HMRC charities website or call their advice line for more information (0845 6032691).
  • Consider the costs of marketing yourselves.

Posted in: Planning & Budgets

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Stringer House, 34 Lupton Street, Hunslet, Leeds, LS10 2QW | Charity Number 1076962 | Company number 3721361